Still, the uninsured are extremely sensitive to price. This means that subsidies will play a major role in keeping consumers in the program. “Interestingly, if falling subsidies drive consumers back to the ranks of the uninsured, the ones who suffer most will likely be not the poor, but the middle income,” the authors report.
PCIP is "priced right", even generously given the risk the plan is taking, yet the program only has 20,000 or so enrolled over a year after it was established.
Why aren't people buying a plan that was designed to alleviate the problem of being uninsured due to a high risk medical condition?
The plan charges a premium that is greater than $0.
Once Obamneycrap rolls out in 2014 the fine for individuals that are non-compliant will be 1% of income or $95, whichever is greater. A family with a $60,000 income will pay a fine of $600 if they do not have government approved health insurance.
If they do elect to buy health insurance, the most they will pay is 10.2% of income, or about $6100.
Buy insurance and pay no more than $6100 or pay a $600 fine.
Is the price right?